Investment grade bond market set to surge

By

Radi Khasawneh

Updated: February 18, 2010 9:52 pm GMT

The investment grade bond market is expected to surge in the first quarter of this year, as the level of debt to be renewed hits its highest level for three years. Of the more than €120bn ($167bn) of debt that will be redeemed early this year, €90bn will be in financial names, according to Barclays Capital research.

As the debt becomes due, tighter lending rules from banks mean that corporates will look to the bond markets for funding. That will lead to crowded issuance from corporates looking to issue bonds.